New Issue: Service Corp. prices $250 million 8.5-year notes at par to yield 7%

By Paul A. Harris

St. Louis, Nov. 17 - Service Corp. International priced a $250 million issue of 8.5-year senior notes (expected B1/confirmed BB-) at par to yield 7% on Wednesday, according to an informed source.

The yield printed at the wide end of the 6 7/8% to 7% price talk.

Bank of America Merrill Lynch and J.P. Morgan Securities LLC were the joint bookrunners for the quick-to-market deal.

The Houston-based provider of death care products and services will use the proceeds to repay bank debt and for general corporate purposes.

Issuer:	Service Corp. International
Amount:	$250 million
Maturity:	May 15, 2019
Securities:	Senior notes
Bookrunners:	Bank of America Merrill Lynch, J.P. Morgan Securities LLC
Joint lead managers:	SunTrust Robinson Humphrey Inc., Wells Fargo Securities
Co-managers:	BBVA Securities, BOSC, Inc., Raymond James & Associates, Davenport & Co. LLC, BB&T Capital Markets
Coupon:	7%
Price:	Par
Yield:	7%
Spread:	447 bps
Call features:	Make-whole call at Treasuries plus 50 bps until Nov. 15, 2014, then callable at 103.5, 101.75, par on and after Nov. 15, 2016
Change-of-control put:	101%
Trade date:	Nov. 17
Settlement date:	Nov. 22
Ratings:	Moody's: expected B1
	Standard & Poor's: BB-
Distribution:	SEC registered
Price talk:	6 7/8% to 7%
Marketing:	Quick to market

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